Study links grocers, home values

Customers shop at Trader Joe's in The Woodlands. According to a new study, having a Trader Joe's in the neighborhood is good for home values.

Customers shop at Trader Joe's in The Woodlands. According to a new...

Homeowners who live near Trader Joe's may benefit from more than just easy access to cookie butter and other popular specialty items, a new study suggests.

Residents near a Trader Joe's saw an average home price appreciation of 67 percent in the last five years, compared with 52 percent for homeowners near a Whole Foods Market and 51 percent near an Aldi, according to Attom Data Solutions.

Just to the east, in 77042, which contains the Whole Foods at Westheimer and Wilcrest in Westchase, home values have registered an 80 percent gain to $302,051 in the last five years.

Northeast of Houston, Aldi in Crosby (77532) and Humble (77346) were in line with the national five-year appreciation rates, with gains of 50 percent and 49 percent respectively. Values in 77021, where Aldi has a store on Old Spanish Trail, more than doubled to $162,028, according to Attom Data.

Nationally, homeowners near a Trader Joe's had the most equity in their homes, averaging 36 percent or $232,439, according to the study. Those near a Whole Foods had an average of 31 percent equity ($187,925) in their homes, while homeowners near an Aldi had average 18 percent equity ($46,352).

Homes near an Aldi presented the best opportunities for investors, according to the report.

House flippers in the Aldi ZIP codes saw 69 percent return on investment, compared with 41 percent for Whole Foods and 36 percent for Trader Joe's. The returns, which reflect properties that sold twice within a 12-month period, do not include rehab costs.

Average gross rental yields totaled 10 percent for the Aldi neighborhoods, about double the rate of the other two grocers.

Trader Joe's has five area locations from central Houston to Katy to The Woodlands. The California-based chain entered Houston in 2012.

Austin-based Whole Foods, which is being acquired by Amazon, has opened 10 local stores since 1984. The locations are in affluent areas including The Woodlands, Champions, Uptown, Sugar Land, Katy, Upper Kirby and Bellaire.

Aldi, a German discount grocer, has grown to more than 30 stores in the local market, mostly in the suburbs, since 2013. A major renovation program is underway.